In a significant boost to the Air India-Vistara merger, Singapore Airlines (SIA) has secured approval from the Indian government for foreign direct investment (FDI) in the deal with the Tata Group. This announcement was made by SIA in a recent filing.
Singapore Airlines, which holds a 49% stake in Vistara, has been working on merging Vistara with Tata-owned Air India. The Tata Group controls the remaining 51% of Vistara. Upon finalization of the merger, SIA is projected to hold about 25.1% of the newly enlarged Air India.
This FDI approval is a key milestone for the Tata-SIA Joint Venture, moving them closer to their goal of establishing a leading full-service airline in both domestic and international markets.
SIA highlighted that this approval, along with anti-trust and merger control clearances and other regulatory approvals, marks a major step towards completing the merger.
While the merger is still subject to compliance with Indian regulations, it is anticipated to conclude by the end of 2024. To accommodate this updated timeline, the parties involved are discussing an extension of the Long Stop Date from October 31, 2024.
Earlier this year, the National Company Law Tribunal (NCLT) approved the merger in June, following a conditional endorsement from Singapore's competition regulator, CCCS, in March. In September 2023, the deal also received conditional approval from the Competition Commission of India (CCI).
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